Apartment Dwellers – Renters – Now is the time to purchase!

Posted on January 5, 2009
Filed Under Homebuyers, Real Estate News | 1 Comment

Now is the time to purchase a home!

There are a number of factors leading up to the concept that a bottom may be forming in many housing locations.   The notion is that unless a metropolitan area has not dropped at least 40% in value than they have not seen the bottom yet.   Well, that may be true for many areas of the country that had rapid expansion and lot’s of speculators.  But, I am not sure this theory holds thru across each and every community.

Here are some tidbits to chew on:

Record drops in home inventories

Inventories could drop by 600,000 in 2009 depending on extent of household formation.

Mortgage Market’s gains stick

Rates are dropping, refi’s are up, and mortgage backed securities are trading well.

As the builders sell off their standing inventory the demand for new homes will increase.  This will be good for home builders that have not filed for Bankruptcy and closed their doors.  Also, the standing inventory of unsold existing homes will decline as well as various areas of the country hit a bottom and the homes are sold.

With the very low interest rates on the market today and the great deals to be had from banks and short sales is it any wonder that buyers see this as a golden opportunity to purchase the home of their dreams.

Credit Suisse has estimated the the mortgage payment on a median priced home is now 16.7 percent of median household income.  Compared with 21% just this summer.  It is also below the average of 23% between 1981 and 2007. During 2006-2007 the average mortgage payment went as high as 37% of the median income.

Also, they have noted that foreclosure prices in the heaviest hit areas have stabilized possibly indicated a bottoming out in those areas.

Sharply lower rates boost home affordability

So, all this adds up to:    Fill in our form below to find out how much home you qualify for.  There are 1st time and move-up buyer loan programs available.   FHA is the hottest loan right now for purchases while a VA loan is appealing to Veteran’s who don’t want to put any money down since a VA home loan is a “zero down payment” loan.   Also, we have the 102% USDA loan program which has income restrictions and geographical restrictions, however, it is more liberal than you might think.  So, check out that program as well.  For instance, all of Ridgefield and Battle Ground is elibible for the USDA loan program.

Comments

One Response to “Apartment Dwellers – Renters – Now is the time to purchase!”

  1. round rock apartments on October 8th, 2011 8:12 am

    In the event that doesn’t work, you can also find websites online that specialize in roommate matching. Whatever means you choose to utilize in your roommate search, it’s important to trust your own intuition. Should your gut tell you that something doesn’t feel right, proceed to the next prospect.

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